Slok Sounds Alarm: Diesel Surge Poses Hidden Inflation Risk

Torsten Slok, chief economist at Apollo, has expressed concerns about inflation in the US economy due to rising diesel prices. Speaking on 'Bloomberg Surveillance', Slok warned that the Federal Reserve may not fully account for this inflation risk since it affects categories beyond just energy within the Consumer Price Index (CPI) basket.

Slok specifically pointed out that diesel price increases are entering areas of the CPI beyond just the energy line. This, he believes, could lead to underestimation of overall inflation by the Federal Reserve.